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Questions and Answers
What is the main objective of the purchasing function in an organization according to Cronjé et al. (2004)?
What is the main objective of the purchasing function in an organization according to Cronjé et al. (2004)?
Maintaining and increasing the business's profitability
What is involved in the selection of suppliers according to the purchasing function activities?
What is involved in the selection of suppliers according to the purchasing function activities?
Selecting external sources for materials and services
What are the key components of the purchasing function, according to Cronjé et al. (2004)?
What are the key components of the purchasing function, according to Cronjé et al. (2004)?
Selection of suppliers, purchasing of materials, transport of materials, deciding prices, determining quality and quantity, expediting and receiving, controlling warehousing and inventory holding
What is the significance of determining quality and quantity in the purchasing function?
What is the significance of determining quality and quantity in the purchasing function?
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What is the purpose of expediting and receiving in the purchasing function?
What is the purpose of expediting and receiving in the purchasing function?
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Which activity is responsible for ensuring that materials arrive at the business premises?
Which activity is responsible for ensuring that materials arrive at the business premises?
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What is the primary goal of the purchasing function in an organization?
What is the primary goal of the purchasing function in an organization?
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Which activity is concerned with verifying the quality of materials and services?
Which activity is concerned with verifying the quality of materials and services?
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What is the purpose of controlling warehousing and inventory holding?
What is the purpose of controlling warehousing and inventory holding?
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What is the role of expediting and receiving materials in the purchasing function?
What is the role of expediting and receiving materials in the purchasing function?
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Study Notes
Purchasing Function
- The purchasing function involves planning, organizing, leading, and controlling activities related to external purchases of materials and services to maintain and increase business profitability.
Key Activities of Purchasing Function
- Selection of suppliers
- Purchasing of materials
- Transportation of materials to the business
- Determining acceptable prices
- Determining quality and quantity of materials and/or services
- Expediting and receiving materials
- Controlling warehousing and inventory holding
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Description
Test your knowledge on the purchasing function, including key activities such as supplier selection, material purchasing, transportation, and inventory control. Learn about the importance of purchasing in maintaining business profitability. Take this quiz to assess your understanding of the purchasing function.
